What about coal? Interactions between climate policies and the global steam coal market until 2030
Because of economic growth and a strong increase in global energy demand the demand for fossil fuels and therefore also greenhouse gas emissions are increasing, although climate policy should lead to the opposite effect. The coal market is of special relevance as coal is available in many countries and often the first choice to meet energy demand. In this paper we assess possible interactions between climate policies and the global steam coal market. Possible market adjustments between demand regions through market effects are investigated with a numerical model of the global steam coal market: the “COALMOD-World” model. This equilibrium model computes future trade flows, infrastructure investments and prices until 2030. We investigate three specific designs of climate policy: a unilateral European climate policy, an Indonesian export-limiting policy and a fast-roll out of carbon capture and storage (CCS) in the broader context of climate policy and market constraints. We find that market adjustment effects in the coal market can have significant positive and negative impacts on the effectiveness of climate policies.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Paulus, Moritz & Trüby, Johannes, 2011. "Coal lumps vs. electrons: How do Chinese bulk energy transport decisions affect the global steam coal market?," Energy Economics, Elsevier, vol. 33(6), pages 1127-1137.
- Pindyck, Robert S., 1981. "Models of resource markets and the explanation of resource price behaviour," Energy Economics, Elsevier, vol. 3(3), pages 130-139, July.
- Holz, Franziska & von Hirschhausen, Christian & Kemfert, Claudia, 2008.
"A strategic model of European gas supply (GASMOD),"
Elsevier, vol. 30(3), pages 766-788, May.
- Lise, Wietze & Hobbs, Benjamin F., 2008. "Future evolution of the liberalised European gas market: Simulation results with a dynamic model," Energy, Elsevier, vol. 33(7), pages 989-1004.
- Bovenberg, A.L. & Goulder, L.H. & Gurney, D.J., 2003.
"Efficiency Costs of Meeting Industry-Distributional Constraints under Environmental Permits and Taxes,"
2003-86, Tilburg University, Center for Economic Research.
- A. Lans Bovenberg & Lawrence H. Goulder & Derek J. Gurney, 2005. "Efficiency Costs of Meeting Industry-Distributional Constraints Under Environmental Permits and Taxes," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 950-970, Winter.
- A.L. Bovenberg & Lawrence H. Goulder & Derek J. Gurney, 2003. "Efficiency Costs of Meeting Industry-Distributional Constraints under Environmental Permits and Taxes," NBER Working Papers 10059, National Bureau of Economic Research, Inc.
- Bohringer, Christoph, 1998. "The synthesis of bottom-up and top-down in energy policy modeling," Energy Economics, Elsevier, vol. 20(3), pages 233-248, June.
- Böhringer, Christoph & Rutherford, Thomas F., 2000. "Decomposing the cost of Kyoto: a global CGE analysis of multilateral policy impacts," ZEW Discussion Papers 00-11, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Lise, Wietze & Hobbs, Benjamin F. & van Oostvoorn, Frits, 2008. "Natural gas corridors between the EU and its main suppliers: Simulation results with the dynamic GASTALE model," Energy Policy, Elsevier, vol. 36(6), pages 1890-1906, June.
- Gibbins, Jon & Chalmers, Hannah, 2008. "Carbon capture and storage," Energy Policy, Elsevier, vol. 36(12), pages 4317-4322, December.
- Christoph Böhringer & Carolyn Fischer & Knut Einar Rosendahl, 2010.
"The Global Effects of Subglobal Climate Policies,"
634, Research Department of Statistics Norway.
- Demailly, Damien & Quirion, Philippe, 2008. "European Emission Trading Scheme and competitiveness: A case study on the iron and steel industry," Energy Economics, Elsevier, vol. 30(4), pages 2009-2027, July.
- Trueby, Johannes & Paulus, Moritz, 2011.
"Market Structure Scenarios in International Steam Coal Trade,"
EWI Working Papers
2011-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln.
- Johannes Truby and Moritz Paulus, 2012. "Market Structure Scenarios in International Steam Coal Trade," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
- Patzek, Tadeusz W. & Croft, Gregory D., 2010. "A global coal production forecast with multi-Hubbert cycle analysis," Energy, Elsevier, vol. 35(8), pages 3109-3122.
- Sinn, Hans-Werner, 2008.
"Public policies against global warming: A supply side approach,"
Munich Reprints in Economics
19638, University of Munich, Department of Economics.
- Hans-Werner Sinn, 2008. "Public policies against global warming: a supply side approach," International Tax and Public Finance, Springer, vol. 15(4), pages 360-394, August.
- Daniel Huppmann & Ruud Egging & Franziska Holz & Sophia Ruester & Christian von Hirschhausen & Steven A. Gabriel, 2009. "The World Gas Market in 2030: Development Scenarios Using the World Gas Model," Discussion Papers of DIW Berlin 931, DIW Berlin, German Institute for Economic Research.
- Clemens Haftendorn & Franziska Holz, 2010. "Modeling and Analysis of the International Steam Coal Trade," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 205-230.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:48:y:2012:i:c:p:274-283. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.